1. 2015 Fall Meeting of the Maritime Law Association of the U.S. Marine Ecology and Maritime Criminal Law Committee Deepwater Horizon / Macondo Well Update Sean Houseal Womble Carlyle Sandridge & Rice, LLP 5 Exchange Street Charleston, SC 29401 shouseal@wcsr.com

2. Deepwater Horizon Relevant Timeline 2010, April 20– Blowout / Explosion at Macondo Well Dec. 15 – U.S. files civil complaint in E.D. Louisiana 2011, April 21– BP agrees to pay $1 Billion for NRD early restoration projects 2012, March 2– Class Action settlements announced between private individuals and BP Nov. 15– BP Criminal Plea Agreement with U.S. announced ($4 Billion total, + remedial order) 2013, Jan. 3 – Transocean settlements announced ($1.4 Billion total, civil and criminal) 2014, Sept. 4 – Court rules on Phase One trial, finding BP grossly negligent & wilful in its misconduct 2015, Jan. 15 – District Court rules on Phase Two trial, finding a discharge of 3.19 million barrels oil Feb. 2 – Phase Three of trial is completed July 3– Agreement in principle between BP and the U.S. is announced Oct. 5 – U.S. lodges Consent Decree with BP, the terms of which would resolve all federal and state claims against BP arising from the incident 60-day public comment period is underway 2

3. Proposed Consent Decree October 5, 2015 – U.S. lodges Consent Decree with BP arising from the 2010 Deepwater Horizon oil spill – The proposed settlement agreement would resolve all pending federal and state claims against BP arising from the incident – Public has 60 days in which to submit comments to U.S. DOJ on the proposed CD, in accordance with 28 C.F.R. 50.7. Comment period ends 12/4/15 3

4. Terms of Proposed Settlement Settlement exceeds $20 Billion - Largest settlement amount with a single entity in U.S. history - In addition to the $44B BP has incurred in cleanup costs & legal fees BP has agreed to pay a $5.5 Billion penalty to resolve civil claims under the Clean Water Act, plus interest (CD paras. 10 – 14) BP has agreed to pay $8.1 Billion to resolve Natural Resource Damages claims under the Oil Pollution Act (CD paras. 15 – 17, 19) BP has reached a related, parallel agreement with 5 Gulf states (Alabama, Florida, Louisiana, Mississippi and Texas) to pay up to $5.9 Billion to the 5 Gulf states, and up to $1Billion to local governments to resolve Economic Damages claims 4

5. CWA Civil Penalty of $5.5 Billion BP has agreed to pay a $5.5 Billion penalty, plus interest, to resolve civil claims under the Clean Water Act, plus interest (CD paras. 10 – 14) – Largest civil penalty in history of environmental law (U.S. DOJ) – Penalty is subject to the RESTORE Act, which allocates 80% to environmental restoration, economic recovery projects, and tourism and seafood promotion in the 5 Gulf states – Remainder of the civil penalties under the CWA will be paid to the Oil Spill Liability Trust Fund in accordance with OPA’90 – Penalty also resolves claims related to incidents of non- compliance that Dept. of Interior’s Bureau of Safety and Environmental Enforcement issued to BP concerning the well 5

6. $8.1 Billion in Natural Resource Damages $8.1 Billion to resolve Natural Resource Damages claims under the Oil Pollution Act (CD paras. 15 – 17, 19) The $8.1B includes the $1B that BP had previously committed to pay for early restoration projects Designated federal and state NRD Trustees have agreed to an allocation of the funds among 5 different restoration goals designed to restore Gulf of Mexico natural resources injured by the spill – 13 restoration categories set forth at p. 3 of the Fact Sheet – Draft Natural Resources Damages Assessment and Restoration Plan is available for public review 6

7. Up to $5.9 Billion to the 5 Gulf states for Economic Damages claims BP has reached a related, parallel agreement with the 5 Gulf states (Alabama, Florida, Louisiana, Mississippi and Texas) to pay $4.9 Billion to the 5 Gulf states to resolve economic damages claims BP will pay up to an additional $1 Billion to local governments to resolve Economic Damages claims 7

8. $350 Million in NRD Assessment Costs In addition, BP will pay $350 Million to federal, state, and local governments for their Natural Resource Damage assessment costs 8

9. Up to $700M for Unknown Injury and Adaptive Management BP will pay up to $700 Million to address natural resource conditions that are presently unknown but may be discovered in the future, and for monitoring, adapting, supplementing, or replacing earlier restoration projects as needed – This amount is comprised of $232M, plus accrued interest on the $8.1 Billion payment (CD Para. 21) 9

10. $250M to reimburse the U.S. for response costs, lost royalties, and to resolve an FCA investigation BP will pay an additional $250 Million in reimbursement costs to the United States for its response costs, lost royalties on oil, and to resolve a False Claims Act investigation (CD Paras. 22 – 24) 10

11. BP’s 2012 criminal guilty plea imposed comprehensive measures upon BP to improve BP’s drilling and safety protocols and corporate ethics. BP also entered into an agreement with EPA, imposing additional measures on BP to resolve the specter of debarment and suspension from further commercial dealings with the federal government. In entering into the CD, BP is acknowledging that it is in compliance with these comprehensive measures. BP has agreed to publish reports on a publically accessible website, documenting its progress (CD paras. 34 – 38, and Appendices 4, 5, 6 and 11) 11 Injunctive Relief

12. During the 60-day public comment period, federal and state trustees plan to hold public meetings in each of the 5 Gulf states and in Washington, D.C. to provide a forum for discussion and to provide further opportunity for public input regarding the terms of the CD and DARP After the close of the 60-day public comment period, the Trustees will consider the input received, and will determine whether to seek court approval of the CD 12 Next Steps

13. http://www.justice.gov/enrd/deepwater-horizon Provides copy of Proposed Consent Decree Documents, including: – Consent Decree – Summary of Consent Decree – Fact Sheet on Consent Decree – Deepwater Horizon/Macondo Well Timeline – Federal Register Notice inviting public comment on Consent Decree 13 DOJ Link/Resources

14. Full text of the Draft PDARP/PEIS is available at www.gulfspillrestoration.noaa.gov – Comments on the Draft PDARP/PEIS must be received on or before December 4, 2015 The 13 proposed restoration types are: 1. Wetlands, coastal, and nearshore habitats 2. Habitat projects on federally managed lands 3. Nutrient reduction 4. Water quality 5. Fish and water column invertebrates 6. Sturgeon 7. Submerged aquatic vegetation 8. Oysters 9. Sea turtles 10. Marine mammals 11. Birds 12. Mesophotic and benthic (lowlight and ocean floor) communities 13. Provide and enhance recreational opportunities 14 NOAA Link for Additional Information on Draft DARP/PEIS

15. Thank You! Questions / Comments / Discussion Sean Houseal Womble Carlyle Sandridge & Rice, LLP 5 Exchange Street Charleston, SC 29401 (843) 720-4622 shouseal@wcsr.com 15